Highyield credit another risk asset down for a second week in a row. A cautious tone. We have been in this big rally. Some might be nervous whether or not it lasts. We are coming to the close of a rough week, particularly for oil. What is going on with Energy Stocks . Abigail it is interesting because on the week energy is the only up sector, up 1. 1 , even though oil is down 33 . Connect bit of a dip some of the investors bottom fishing. When you look at the s p 500 on the week, it is a bad week. The worst week in about five weeks, down 2. 7 . Inflection points sometimes happen very slowly, but it will be important to see what next week brings. If we have another down week, that could suggest a whipsaw in emerging range. Next week we will get a look at earnings from Big Companies such as apple, alphabet, amazon, microsoft. It could be an important earnings week along with the macro we have been paying attention to. Investors seem a little bit cautious. David all of the tech guys. Thanks so much to abigail doolittle. Now we go to the white house where the president is due to sign the 484 billion spending package. At the same time, it looks like the next round may not be that easy. We turned to Josh Wingrove, who covers the white house for bloomberg. Already theres a fairly vigorous debate over what happens next, particularly the state assistance issue. Josh absolutely. There is tension. Leader mcconnell and the republicans in the senate saying he would rather some states go the bankruptcy route then put an aid together for states. Democrats have made that a priority. The president has not taken a Firm Position either way. The reporters right now are waiting to go into the oval office to watch him sign the latest virus bill. It remains unclear as to what will be in the next package. We used to spend weeks or months fighting over to how to spend these levels of money and now they can go out the door in days. The administration has been pumping the brakes saying the next package is maybe the last one. That will depend on the virus. David we have an election coming up so that may affect the schedule through the summer. We hear a lot from the white house about getting the economy going again. President trump has been keen to do that. He has tried to pump the brakes on the government of georgia. Sayingesident mike pence he says we could be back in business by memorial day. It is the white house in danger of getting our hopes up too high . Josh it has been tough to track where they want people to go. We are in the face of this reopening, states have a three phase plan to follow. The george of governor got his hand slapped by the georgia governor got his hand slapped by trump for deviating from that. It is tough to know how quickly things should be reopening. We will see. We are continuing to see signs we have reached plateaus and some of the worst hit areas. On the flipside, the u. S. Top 50,000 deaths today. That is a solemn and somber mile marker, the impact this virus has had. That is david and by far, the most important thing. How many people are sick or dying. The president concerned about his approval. There seems to be some indication he is having some erosion of his approval as he talked so often and sometimes on things that seem off. Josh he has been more combative with the press lately. Last night he suggested there might be a way to use light inside the body or use disinfected inside the body to fight the virus, so the white house has been walking that back over the course of the day. The polls have been not looking good for him. That is in two ways, both the polls against biden, but in particular trump is trailing governors an important swing states. Voters in states like michigan and pennsylvania are saying they think their democratic governors have done a better job responding to the virus than the president has. Those are various warning signs. Elections can change things. The president supporters are still motivated and that might affect things. Then we have to deal with social distancing in an election campaign. We do not know how that will look. David we certainly do not. It is a long way to november. Thanks a much to Josh Wingrove who covers the white house for bloomberg. Now it is time for bloomberg first word news. We turned to mark crumpton. Mark thank you. As Josh Wingrove just reported, the u. S. Death toll has now reached 50,000. It is now the global epicenter of the outbreak. The latest figures also show that 870,000 people in the u. S. Have been infected. U. S. City has been the hardest hit. Or than 16,000 people have died. President trump has president trumps comments on injecting bleach are sparking concerns among expert to call it an ridiculous concept that would damage the lungs. Lysol is warning its products should not be used as internal treatment for the coronavirus. This after thursdays briefing for the president noted researchers were looking at the effects of disinfectant on the virus and considered allowed if be injected into people. Today the white house counted the media was misinterpreting the president s comments. The number of coronavirus cases in china may have been four times be injected higher than ws officially reported according to a study published in the lancet medical journal. The study says the way infections are measured can if thesignificantly term clinical diagnoses had been applied, cases wouldve been about 232,000. China reported 55,000 infections. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. I am mark crumpton. This is bloomberg. David . David thanks a much. Coming up, dr. Richard besser, head of the Robert Wood Johnson foundation, here to talk about his role on a counsel trying to get new jersey and some other northeastern states back online. Ons is balance of power Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. Dr. Richard besser is the head of the Robert Wood Johnson foundation and served as the acting head of the cdc during the time of the swine and has experience with these sorts of problems. We welcome him to bloomberg. I should say had the privilege to work for you for several years at abc news. I know how good you are. You advised Public Officials. It is hard because if you are a public official you want to encourage hope, whether it is a new treatment or whether it is some other treatment like we heard yesterday about sunlight and disinfectant. How do you allow people to encourage hope without distracting . How constructive or troublesome is it for Public Officials to suggest things like we should use disinfectant . Dr. Besser it is great to be talking with you. I think you have to be careful. One of the best approaches to that is lets science be discussed by scientists. Put forth your best Public Health scientists. Behave dr. Fauci, it would great to have a leader from the cdc there as well, and let them talk about what is being learned scientifically. It is so easy to fall into the trap of false hope putting forward ideas for miracle cures when the science has not been done to know whether or not any of these things could work. Readry so much of what we is driven by press releases that are geared towards stock prices rather than science fact, which is geared toward trying to improve health. David you never want to give false hope, but here the consequences might be more serious than that. If people believe this they might change their behavior and try to move away from social distancing too soon. Dr. Besser one of the challenging by not hearing from Public Health scientists is it makes it hard for the public to decide what to do in a factbased way. Change thee, the cdc recommendation regarding people wearing masks. They say now people going out in public should wear a mask. In ahas to be shared careful way because the science in terms of how much extra protection you get from a mask is very weak. You would not want to see people saying i am wearing a mask, i can go out where before i would not. The safer thing is to still try to minimize the amount of contact you have with other people, keeping six feet away. Hope is important. I think one of the ways people remain hopeful is by believing that our Public Health officials are working hard to learn and adapt based on the best science and that our policies and our decisions at that level are being driven by the best Public Health scientists. [no audio] mckeeel inichael the Bloomberg News room michael i am Michael Mckee in the Bloomberg News room. We will get back to david westin in just a moment. We have been talking with Richard Besser about what is been happening with the medical side of things. We now want to check in on what is happening with the financial side of things. That is what is going on with the people in the markets are being affected by the Federal Reserve and the other lending programs we have brought forward. Right now we will listen in on an interview we did earlier today with tom barrack of Colony Capital. Tom when we talk about collapse, we are talking about three separate things. We are talking about Financial System that supports the Real Estate Market, which is an Institutional Banking support ,ystem, a shadow Banking System and individual investors all over the world buying bonds. That system is delicate. It is frayed, it relies on one thing cash flow. When cash flow stops, you have a problem. In north america has been if the cash flow stops and you are a debtor, there is a recourse system, legal system which will protect the lender. If you are a landlord and renters do not pay, there is a legal system which protects the landlord. All of those options are out the window. We are embedded in chaos supporting the Liquidity Program in this interim of cessation of revenue. We have not had a crisis like this. This crisis weve never had one where we have a government taking revenue. How would you describe the situation . How bad is it now . How bad is it likely to get . Tom it depends how soon we get to work, which is politically far beyond my job description. Workerica can go back to in waves, responsibly, and start creating income in some of these tranches, tranches being everything. If you take the real estate world, the best today being technology and digital. Cell towers, data storage, fiber optics, Public Storage that does not require people and stuff, the worst being retail and hospitality, where it has just stopped. If we do not go back to work, if consumers do not start buying, and a big problem we have is the separation between the haves and the haves not gets worse the longer this goes on as we approach 30 Million People out of employment, it could get drastic. Drastic meeting erik what does drastic mean . Continue that thought. Crises,we look at past and you are too to remember, i used to have blonde hair and blue eyes before 1990, which was the rtc, followed by 20072008. What happens as real estate does not go anywhere. It just gets repriced. Capital gets wiped out. Holders of equity and holders and debt and occupants of spaces just merely rotate come at the capital structure gets realigned. Who is the beneficiary of the disaster and subbing the little people, not the big people. Ends up being the little people, not the big people. Companies restructure. Housing is supported by fannie and freddie and a fluid commercial mortgage system. Banks do not want to hold residential mortgages. They package the mortgages in tranches of securities and sell them to bonds all over the world. That is what keeps the Mortgage Market going great for most of the 33 trillion in north american residential, we have lived up goldilocks era for 10 years. Since 2010 it has been 46 home price appreciation. That is gone. So is the desire to have new homes start in municipalities and states, which are on the verge of bankruptcy. It takes time for this tale to catch up. Market andmortgage commercial Real Estate Market is the same. Ichael why will keep track of what is going on in the commercial Mortgage Market and the other thing tom barrack of Colony Capital is concerned about, we are also concerned with how you open up the country and how you stimulate the economy. The schatzker spoke with former director of the National Economic council. Ushapedk it is a recovery. Im trying to think about a ushaped recovery knowing certain businesses or certain events will not come back in the ushaped recovery for some time. I do not think we are going to basketball games or baseball games anytime soon. And think basketball baseball might play without fans in the stadium in a controlled atmosphere . Yes i do, and i think we would all enjoy having that entertainment. That is a different type of environment where you have 20,000 or 50,000 people going to a specific event. Erik scott gottlieb, the former fda commissioner, drafted a roadmap to reopening the economy. It relies heavily on logistics and heavily on compliance. Do you think what scott outlined is a viable approach . I do. I have talked to scott quite a bit during this. I think scott has been practical and try to be reasonable in what he has suggested, and i think he is trying to lay out a way we can try to get back into a more normalized economy as soon as reasonably possible. I think what he has laid out is quite reasonable. Erik what do you think are the biggest obstacles to reopening. You talk about your trepidation at the gut instinct you have to temper your optimism with realism. What you think those challenges are . Gary there are a large amount of people in the country who are getting government benefits that may be in excess of what they will learn when they go back to work. That is another conversation we probably need to have in this country at some point, but if you are at home doing nothing earning more money than you would if you went back to work, it is harder to get those people back to work. I have heard of many fast food are doings who Curbside Pickup and trying to hire people. I see help wanted signs and a lot of the local retail establishments who are doing Curbside Pickup they cannot get people to reengage in the economy. We will need people to reengage and want to go back to work and not rely on the government handouts. That is number one for me. Amber two is we will need feedback loop through testing. Everyone does talk about testing where we will need to know if we have a sudden outbreak of the virus and the virus reappears. We will need to slow down the economy in certain areas. It will not appear everywhere at once. The better data and the more granular data we have, the easier it will be to open the economy in certain places and close it in other places, while allowing places where we are not zika virus reappear to stay open and continue where we are not seeing the virus reappear continue to stay open. Erik what do you think are the most important lessons to be taken from the panic selling, massive deleveraging, and speed at which prices collapse during the month of march. Gary these are not normal environments. The Financial Markets around the world have held up quite well. We have had relatively good liquidity, we have good price discovery, everyone has wanted to get in and out of Financial Markets has been able to do that. One of the unintended consequences we are seeing, and i think when we write about this period of time economically, we will talk a lot about this is yes the banks have been in very good financial position, but the Central Banks around the world have had to provide substantially more liquidity to this crisis than any other crisis in the past. Cohn talking with our erik schatzker. This morning, one analyst said it will be hard to predict which way the markets go. We could see them go either way depending on the news. There has been a lot of news, there is no real definition to the markets. New york reporting the third day of increase in coronavirus cases, but the fewest new virus deaths since march. Italy reported the fewest virus deaths and more than five weeks. Not enough to push all markets higher, but as you can see the s p 500 is up more than. 1 in the dow is down more than. 1 . The nasdaq higher as well. Looking at the bond market, real reflection of what is going on. The two year note yield at 21 basis points, the five year at 36, the 10 year at 60. We all stayed up late last night to watch the nfl draft. David westin will be back in a few moments. He will be talking about that. I am Michael Mckee sitting in for david. This is balance of power on Bloomberg Television. Nowadays you do more from home than ever before. The xfinity my account app puts you in control with Digital Tools to give you the help you need when you need it. Get fast and easy answers with personalized help 24 hours a day, 7 days a week. Change your wifi password to a phrase thats easy to remember. Even troubleshoot your services on your own. Were working to make things a little easier for everyone. Download the xfinity my account app today. David this is balance of power on Bloomberg Television and radio. Im david westin. Everyone seems to agree we need more testing on the covid19 virus if we are going to open up the economy, but how much testing do we need and how are we going to get there . The Rockefeller Foundatio